Finance Minister Nirmala Sitharaman said India aims to launch a digital currency by 2023. “The government and RBI are looking at several commercial uses of it, not just financial inclusion, which is largely achieved through JAM Trinity (Jan Dhan-Aadhaar-Mobile),” she said. The minister also said that the government has an ongoing digital push across all industries.

“Central bank digital currency, digital bank, and digital university have been announced in the federal budget. The government continues to drive digitalization in various fields,” Sitharaman said. She had said in the budget that the introduction of digital currency would give a significant boost to the digital economy.

“Digital currency will also lead to a more efficient and cheaper money management system. Therefore, it is proposed to use blockchain and other technologies to introduce the digital rupee issued by the RBI in 2022-23,” Sitharaman said. Unlike current mobile wallet systems offered by private companies, the digital rupee blockchain being developed by the Reserve Bank will be able to track all transactions.

Sitharaman had earlier said that India would make a thoughtful decision on regulation around virtual currencies and that “decisions on cryptocurrencies will not be rushed.”